At a Futures Industry Association convention, CFTC Chair Behnam revealed his objectives.
Rules for event contracts will be improved under the proposed CFTC regulations.
The U.S CFTC is expected to propose additional regulatory measures for the predictions market. The goal of these safeguards is to reduce potential dangers and biases in vertically integrated models. Particularly in the crypto industry, models of such systems that allow enterprises to manage several levels of their supply chain or operations have come under fire.
At a Futures Industry Association convention in Florida, CFTC Chair Rostin Behnam revealed his objectives. He brought attention to the fact that the conventional geographical boundaries between market participants have shifted as a result of electronification and decentralized finance (DeFi).
Less Stringent Than Those of SEC
Many groups, including Coinbase and other consumer advocates, submitted comments to the CFTC during last year’s public comment session. A lack of regulatory clarity was highlighted in the response, especially regarding the increased dangers that have emerged due to the concentration of positions in crypto businesses.
Such integrated operations have already prompted CFTC Commissioner Christy Goldsmith Romero to voice her worries. She used the FTX collapse to illustrate the need for regulatory efforts to prevent future market disruptions of this kind.
Rules for event contracts will be improved under the proposed CFTC regulations. The goal of this project is to make the regulations for market players and exchanges that list these contracts more clear.
Behnam also addressed some of the complaints leveled against the CFTC over its crypto regulation policies. He disputed the claim that the agency’s procedures are less stringent than those of the SEC. The CFTC’s approach is built on principle-based regulation, he said, which allows for flexibility and innovation while yet maintaining regulatory rigor.
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